Massive Interest rate cuts in PPF Savings

manu1991

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Inflation is around 5% so in real terms you will not earn anything substantial by keeping money in PPF.
 

Sushubh

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this increases confusion on whether i should extend my ppf next month for five years. i mean sure ppf interest is tax free (for now) and fd interest would probably drop down in coming days (if not from tomorrow). but this is just sad.
 

Sushubh

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heh. i still remember the time when kvp from india post would double your money in flat five years. now it takes more than 12-13 years. with this interest rate drop... probably 15 now?
 

manu1991

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From what I remember, roughly whatever multiplied by the interest rate gives you close to 72 is when the money will double so at 6% it would be roughly 12 years.

I am guessing they want more people to put money in the stock market but then they stopped equity mutual funds being tax free as well
 


mhsabir

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Right, it was surprising that they took this step during elections. I guess will apply from next quarter or something.